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Increased ore mined/processed at Russia’s biggest gold miner PJSC Polyus’ 6 operations has failed to avert a 6% gold production fall to 601,000oz in the Mar 2019 qtr (Q1 19) from Q4 18’s 640,000oz.Ore mined jumped 16% to 13.9Mt, with ore processed up 11% to 10.3Mt and recoveries up to 81.4% from 80.6%.

Polyus, Russia’s largest gold producer, is on track to boost production to 2.8Moz and reduce its capital expenditure in 2019, CEO Pavel Grachev has told Reuters.Its 2018 production is on track to reach the upper end of its forecast 2.375Moz-2.425Moz.With the ramp-up of production at its Natalka gold deposit in Russia’s far east in its final stage, the company expects capital expenditure to fall to $US650M in 2019 and to $550M in 2020 from $850M in 2018. Natalka is expected to reach full capacity in coming months.

Russia’s largest gold producer Polyus sees its $US2B-$2.5B construction capex, 1.6Moz pa Sukhoi Log Gold Project as a cornerstone of the company’s future development, with production expected to start in or around 2026.Following the recently completed scoping study and verification drilling, the Sukhoi Log project parameters are for a conventional gravity/flotation process to treat an average 30Mtpa mill throughput, producing an average 1.6Moz pa at total cash costs of $US420oz-$470oz with recoveries of 88%-90%.

Russia’s gold heavyweight Polyus’ Mar 2018 qtr (Q1 18) profit has fallen 9% on Q4 17 to $US244M, hit by non-cash items, a 13% drop in gold output to 507,000oz and increased costs.Adjusted net profit was down 8% to $223M on revenue 17% worse to $617M on gold sales down 23% to 459,000oz, adjusted EBITDA down 17% to $387M, with net cash inflow from operations sliding to $261M from $344M. The bottom line also suffered under total cash costs up 18% to $383oz and AISC up 3% to $684oz.

Russia’s biggest gold producer and 1 of the top 10 gold miners globally PJSC Polyus’ targeted 2.8Moz pa in FY/CY 2019 will be underpinned by its 10Mtpa Natalka Mill that has already produced more than 40,000oz since the beginning of 2018 and ramping to full production before the end of 2018 adding about 450,000oz pa over a current 31-year LoM.The mill, the biggest in Russia, has just surpassed 80% of its 10Mtpa design throughput from the Natalka open pit mine after pouring 1st doré on Dec 4, 2017.

Russia's largest gold producer Polyus has poured the first doré gold at the Natalka project, its main greenfield project in the Russian Far East, during hot commissioning of the 10Mtpa mill heading for complete ramp-up by end-2018.The processing plant, the largest in Russia, will contribute to a targeted increase in overall gold production of about 2.8Moz in 2019.With 16Moz ore reserves, Natalka has an estimated mine life of 31 years of open pit mining.